FOR IMMEDIATE RELEASE


IIPRC NOW ACCEPTING ANNUITY PRODUCTS
New Standards Include Variable and Non-Variable Annuity Products

WASHINGTON, D.C. (June 15, 2010) - The Interstate Insurance Product Regulation Commission (IIPRC) is now accepting both variable and non-variable annuity products with guaranteed benefit features. The following Uniform Standards were adopted by the Commission in February and are now effective for purposes of filing:
 

  • Guaranteed Living Benefits for Individual Deferred Non-Variable Annuities;
  • Guaranteed Living Benefits for Individual Deferred Variable Annuities; and
  • Guaranteed Minimum Death Benefits for Individual Deferred Variable Annuities.
     

These benefits can be submitted as part of the annuity contract or as a rider, endorsement or amendment, and are eligible for mix and match with state-approved product components.

"Guaranteed benefits are becoming very popular features in annuity products as they can provide a guaranteed minimum living, death benefit or income stream to the owner if market investments drop below a certain level," said Mary Jo Hudson, IIPRC Chair and Ohio Insurance Director. "These additional standards reflect the careful consideration of consumer interests to ensure accessibility and affordability of these benefits by providing enhanced specificity and limitations on termination of guaranteed features, and requiring prominently prescribed cover-page consumer disclosures and stringently applied nonforfeiture requirements.”

"We continue to round out the extensive types of individual annuity products which may be filed through the IIPRC's central, standardized filing process," said Hudson. "The IIPRC is providing speed-to-market benefits to both companies and its customers by facilitating the preparation and submission of a product filing."

Once approved under rigorous, detailed and consumer-oriented uniform standards, filings can be marketed in up to 35 states and Puerto Rico, with IIPRC review taking 60 days or less. A Filing Information Notice (FIN) has been posted to the website to provide filing guidance: http://www.insurancecompact.org/fin.htm.

About the Commission

Currently, 36 jurisdictions have joined the Interstate Insurance Product Regulation Commission (IIPRC). Compacting members are Alaska, Colorado, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

The IIPRC enables state insurance regulators to develop uniform national standards for asset protection insurance products, such as life insurance, annuities, disability income and long-term care insurance. The IIPRC establishes a central filing point for these insurance products, enhancing the speed and efficiency of regulatory decisions and allowing companies to compete more effectively in the modern financial marketplace, while continuing to provide protection for consumers.

For more information, visit www.insurancecompact.org.


 

You are currently subscribed to the "Interstate Insurance Product Regulation Commission News Release" electronic service. To unsubscribe from this service, send a blank e-mail to the Insurance Compact News Release service.


© 2009 Interstate Insurance Product Regulation Commission. All rights reserved.